Comparison of the Best UK Mortgage Payment Calculators: Lloyds vs TSB vs Tesco vs Woolwich
The internet has a number of helpful resources and tools at your disposal to make finding a mortgage as painless as possible.
A UK mortgage repayment calculator can help you put a potential home loan in perspective and understand just how much you are poised to pay each month.
Knowing this number is essential for your financial health. An informed estimate of your mortgage repayment will determine whether you can afford a mortgage and what adjustments you need to make to your budget.
In this article, we will review and compare UK mortgage payment calculators from a few of the most popular banks.
Lloyds Mortgage Calculator
The Lloyds mortgage calculator is a useful tool for any customers exploring their home loan options with this bank. A customer using the Lloyds Bank mortgage calculator may wish to apply for a straightforward mortgage or refinance an existing mortgage.
In either of these scenarios, receiving an estimate of the kinds of monthly payments they will be making is enormously helpful and indicative of why UK mortgage repayment calculators are necessary.
Image Source: Best UK Mortgage Payment Calculators
The Lloyds mortgage calculator provides customers access to the bank’s deals and available interest rates.
In addition, this UK mortgage repayment or Lloyds Bank mortgage calculator offered by Lloyds Bank allows customers to see just how much they can borrow from the bank, since this number will vary among consumers.
The Lloyds mortgage calculator only serves as a UK mortgage repayment calculator, not as a UK mortgage payment calculator for interest-only mortgages. An interest-only mortgage means the borrower is only required to pay the interest they owe on the loan each month.
The upside is that the monthly payments are significantly lower. The downside is that you are not contributing any money toward reducing the principal balance. The other downside is that these kinds of calculations are not possible with the Lloyds Bank mortgage calculator.
Using the Lloyds Mortgage Calculator
After answering a couple questions related to your status as a customer at Lloyds Bank, the Lloyds mortgage calculator asks additional questions related to your plans.
This section of the Lloyds mortgages calculator is thorough, and it is helpful for people exploring their homeownership options. Additionally, this UK mortgage repayment calculator takes things a step beyond simply asking for the basics like down payment and interest rate.
Before getting into the nitty gritty details related to rates and down payments, the Lloyds mortgages calculator wants to know what you are thinking about. Namely, the mortgage calculator for Lloyds asks whether you are thinking about:
- Buying your first home
- Moving to another home
- Moving your mortgage from another bank
- Buying a second home
- Switching your Lloyds mortgage deal
- Borrowing more on your Lloyds mortgage
- Buying a property to let
- Remortgaging your buy-to-let property
- Borrowing more on your buy-to-let property
- Switching your Lloyds buy-to-let mortgage deal
For the purposes of this article, we will assume we are buying our first home when using the Lloyds mortgage calculator.
The Lloyds mortgages calculator is also curious about how many people are borrowing (we will say one person) and the number of dependents, which we will put down as two. Next, this UK mortgage payment calculator gets into the specific numbers.
To find the best estimate, the Lloyds mortgage calculator asks you to enter your annual income before tax (we will say £50,000), your other annual income before tax (we will say £0), and your mortgage term, which is how long you plan to spend paying off this mortgage (we will enter 25 years into this UK mortgage payment calculator).
The Lloyds mortgage calculator will also ask you to enter a rough estimate of your monthly commitments, which is the amount of money you spend on bills and other fixed expenses per month. This is an effective use of the UK mortgage affordability calculator.
By entering how much money you spend on other expenses per month, you are using this UK mortgage repayment calculator as more than just that. You are also using it as a UK mortgage affordability calculator.
Just because you have the money to make a certain payment every month does not mean that you can afford to be shelling out that much on a home loan. The mortgage calculator for Lloyds emphasizes the importance of taking this into consideration when looking for a mortgage.
Calculate the amount of money you spend every month repaying other debt—on childcare, bills, and any other fixed monthly expenses—and then enter that final number into your UK mortgage affordability calculator. The mortgage calculator for Lloyds does not require you to include things like groceries or additional household expenses. Think of this as a tally of your other debt commitments. For our purposes of reviewing the Lloyds mortgage calculator, we will say £1,000 of fixed expenses or debt obligations per month.
Afterward, the Lloyds mortgage calculator asks for the basics related to the value of the property you wish to buy (£300,000), the deposit you wish to make (£80,000), and the mortgage term (25 years). This is all entered into the bank’s UK mortgage repayment calculator.
Using this information, the Lloyds mortgage calculator estimates that the monthly payments would be between £973 and £1,028 per month. It then provides an option to look at the deals and rates available with Lloyds Bank.
Verdict on Lloyds Mortgage Calculator
The Lloyds UK mortgage repayment calculator is clean, straightforward, and easy to use. Additionally, it allows users to conveniently transition from seeing how much they would be paying each month to exploring their options with Lloyds Bank. As expected, the Lloyds mortgage calculator only provides estimates based on its own available rates with little room for comparison to other banks.
TSB Mortgage Calculator
TSB Bank is the result of a divestment from Lloyds Bank, making comparisons between the two banks inevitable. TSB is a retail and commercial bank that offers several financial products and services, including mortgages. Their website provides customers with a TSB mortgage calculator for their convenience.
The TSB mortgage calculator is handily divided into two sections: “How much can I borrow?” and “Find a mortgage.” This allows consumers with differing purposes to use the UK mortgage repayment calculator that is relevant to their needs.
Using the “How much can I borrow?” TSB Mortgage Calculator
The “How much can I borrow?” TSB mortgage calculator asks for the number of applicants, number of dependents, annual income, annual bonuses, and extra income, and monthly debt commitments.
We will enter the following into the TSB mortgage calculator:
- Number of applicants: 1
- Number of dependents: 2
- Annual income: £50,000
- Annual bonuses and extra income: £0
- Monthly debt commitments: £1,000
The TSB mortgage calculator estimates that the bank can lend approximately £114,580 to a person in this circumstance. After learning this, a customer who banks with TSB and is interested in acquiring a mortgage with the financial institution can then explore the mortgage options that are available after using this UK mortgage repayment calculator.
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Using the “Find a Mortgage” TSB Mortgage Calculator
For those who are simply curious what kind of mortgage payments they will have in different scenarios with varying down payments, the “Find a mortgage” TSB mortgage calculator is a helpful tool. Users first indicate whether they are a first-time buyer, moving homes, buying an additional property, or remortgaging to the UK mortgage repayment calculator.
You then indicate the deposit, property value, and repayment term. The TSB mortgage calculator is extremely straightforward and easy to use.
After using the TSB mortgage calculator to find a mortgage, users are greeted with the same page indicating their projected monthly payment. Additionally, they are presented with potential mortgage plans and rates offered by TSB Bank.
Lloyds vs. TSB Mortgage Calculator
As mentioned earlier, there is a natural temptation to make a Lloyds vs. TSB mortgage calculator comparison since TSB was formed as a result of a divestment from Lloyds. When it comes to the Lloyds mortgage calculator vs. the TSB mortgage calculator, they seem to be evenly matched. Both banks provide a simple and straightforward tool for calculating mortgage rates and seeing how much an individual can borrow.
What may be needed instead is a Lloyds vs. TSB mortgage calculator vs. general mortgage calculators comparison. The thing is that both UK mortgage repayment calculators offered by either bank are designed to convert users into customers for that specific bank.
The rates they provide are from their specific branches and do not provide much of a resource in terms of comparing with other lenders—a consumer would need to shop around and compare the rates themselves.
Furthermore, both branches offer very simplified UK mortgage repayment calculators. A comprehensive mortgage calculator includes additional data fields for information related to private mortgage insurance or property taxes. You will not be able to incorporate those details in these calculators.
Barclays or Woolwich Mortgage Calculator
There is a bit of confusion over this for some. Technically, Woolwich was acquired by Barclays in 2000, so when people refer to Woolwich, they are actually talking about present-day Barclays. The mortgages provided under the Barclays parent company are sometimes referred to as Woolwich mortgages, so we will refer to them as Woolwich mortgages in this article.
The Woolwich mortgage calculator provides a similar calculator to both the Lloyds mortgage calculator and the TSB mortgage calculator. Users can use a version of the UK mortgage repayment calculator that tells them what their monthly mortgage payments will be or how much they will be able to borrow.
This feature that makes these tools into UK mortgage affordability calculators is essential in helping people know exactly how much money they can afford to borrow on their existing income and budget.
An interesting difference from the other UK mortgage repayment calculators is that the Woolwich mortgage calculator allows users to input their estimated loan length in terms of months in addition to years so that there is added specificity to their estimations.
Instead of simply entering that their loan term will be 25 years, a user can enter that they plan on taking 20 years and 9 months to pay off their loan, giving them a better approximation of their monthly payments using this UK mortgage affordability calculator.
The value of these UK mortgage repayment calculators is in their ability to give consumers a number as close to the actual monthly payment as possible. The fact that the Woolwich mortgage calculator allows users to make their data entry even more precise adds value to the tool.
Tesco Mortgage Calculator
Tesco offers personal banking and financial services, including mortgages. Its mortgage calculator provides the same simple interface for entering data for potential homeowners who want to play around with numbers and explore their mortgage options.
The Tesco mortgage calculator is useful for customers who are already banking with Tesco and are interested in seeing what banks are available to them through this financial institution.
The Tesco mortgage calculator is even more barebones than the UK mortgage repayment calculators offered by the other three banks, if such a thing is possible. The Tesco UK mortgage payment calculator asks for your income, whether you are buying on your own, your savings, and your debt obligations. There is no feature that makes the tool double as a UK mortgage affordability calculator.
But it is barebones in a positive way. It has a clean interface that makes it easy to navigate the screen and use the Tesco mortgage calculator.
Comparing the UK Mortgage Repayment Calculators
Establishing which of these UK mortgage repayment calculators is best is a difficult feat since it is something like comparing apples to oranges.
The Lloyds mortgage calculator, TSB mortgage calculator, Woolwich mortgage calculator, and Tesco mortgage calculator are each designed to funnel users to choose a mortgage with the specific company. As a result, they are useful for gathering data but not for comparing a lot of different rates from competitors at the same time.
In fact, using the Woolworth mortgage calculator, Tesco mortgage calculator, TSB mortgage calculator, or Lloyds mortgage calculator is more useful if you are already a customer with that bank and are interested in continuing to use their financial products. People in this scenario would be eager to explore the different rates offered by their chosen financial institution with a convenient online UK mortgage repayment calculator.
That being said, the UK mortgage repayment calculators discussed in these articles still have their limitations. There may be other types of budgeting and monthly payment questions people have in regards to their mortgage that the Woolwich mortgage calculator or Tesco mortgage calculator may not be able to help them with.
For instance, many people are interested in finding a UK mortgage overpayment calculator. Paying off your mortgage early is a dream many borrowers have. Your mortgage will likely be the most expensive bill you pay each month (and one of the most important ones next to food and heating). Some are interested in figuring out just how much extra they can afford to contribute to their mortgage repayment.
In some cases, repaying your mortgage entirely early by using your savings or an unexpected windfall may be a negative. The biggest negative is that you could face a penalty for early repayment of your mortgage. That said, the positives include not having to worry about your monthly mortgage payments, the potential for tens of thousands of pounds in savings from lost interest, and the pride of owning your home outright. A UK mortgage overpayment calculator can be helpful when making this kind of decision.
Individuals interested in calculating how much they can afford to overpay each month (assuming penalties will not negate the benefits of overpaying each month) can use this UK mortgage overpayment calculator to explore their options.
Using a UK mortgage overpayment calculator is helpful in many different ways. It can help you see whether the money you are overpaying is actually helping you reduce the amount of money you owe toward the total balance instead of just making your monthly payments lower.
More to the point, deciding to overpay your mortgage does not mean you have to pay off your mortgage entirely. You can choose to make overpayments per month or make recurring overpayments instead of paying off the entire home loan at once with a lump sum.
The UK mortgage overpayment calculator allows you to input your current balance remaining, the remaining length of time for your loan repayment, the annual interest rate or monthly payment, and whether you want to do a one-off overpayment or recurring overpayment.
There are useful and educational tools available online related to mortgages and homeownership. Search for the UK mortgage repayment calculator (or UK mortgage overpayment calculator if you are lucky) and be proactive about your home loans.
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